1 00:00:00,200 --> 00:00:03,920 Speaker 1: Australia's property market is roaring back to life, with all 2 00:00:04,040 --> 00:00:07,920 Speaker 1: eight capital cities posting simultaneous house price growth for the 3 00:00:07,960 --> 00:00:11,640 Speaker 1: first time in four years. That is according to Domain's 4 00:00:11,960 --> 00:00:15,480 Speaker 1: House Price report for the June quarter. Now, what followed 5 00:00:15,480 --> 00:00:18,479 Speaker 1: a sluggish twenty twenty four the latest report reveals a 6 00:00:18,600 --> 00:00:22,760 Speaker 1: sharp acceleration of property prices, powered by the Reserve Bank 7 00:00:22,800 --> 00:00:27,760 Speaker 1: of Australia's shift into a rate cutting cycle. Now joining 8 00:00:27,840 --> 00:00:30,479 Speaker 1: us on the line to break it all down is 9 00:00:30,560 --> 00:00:35,800 Speaker 1: the Chief of Research and Economics, Nicola Pale. Good morning 10 00:00:35,800 --> 00:00:36,879 Speaker 1: to you, Nicola. 11 00:00:37,240 --> 00:00:38,000 Speaker 2: Very good morning. 12 00:00:38,280 --> 00:00:40,080 Speaker 1: Now talk me through the key findings. 13 00:00:41,000 --> 00:00:43,480 Speaker 2: So we have found that price momentum is back across 14 00:00:43,520 --> 00:00:46,320 Speaker 2: Australia's housing market and as you mentioned, we have got 15 00:00:46,400 --> 00:00:49,800 Speaker 2: growth across every single capital city over the June quarter, 16 00:00:49,920 --> 00:00:52,519 Speaker 2: both for houses and for units, so it is a 17 00:00:52,640 --> 00:00:56,560 Speaker 2: unanimous upswinging price We saw many of our capital cities 18 00:00:56,560 --> 00:00:59,560 Speaker 2: actually accelerate in terms of their price growth, and as 19 00:00:59,560 --> 00:01:01,360 Speaker 2: you mentioned, you know it's the first time in four 20 00:01:01,440 --> 00:01:04,640 Speaker 2: years we've seen house prices rise across every single capital 21 00:01:04,680 --> 00:01:07,640 Speaker 2: city over a quarter, and for units it's the first 22 00:01:07,640 --> 00:01:10,160 Speaker 2: time in two years. So it really shows that we 23 00:01:10,240 --> 00:01:12,959 Speaker 2: are seeing not only that price momentum is back, but 24 00:01:13,040 --> 00:01:15,040 Speaker 2: we're starting to see a bit of a shift between 25 00:01:15,080 --> 00:01:17,800 Speaker 2: the cities that are really seeing the stronger rates of 26 00:01:17,800 --> 00:01:19,640 Speaker 2: growth compared to ones that aren't. 27 00:01:19,920 --> 00:01:25,000 Speaker 1: Nicolas, which markets really lead the rebound in those house prices. 28 00:01:25,800 --> 00:01:28,679 Speaker 2: So we have seen a start change coming out of 29 00:01:28,720 --> 00:01:32,200 Speaker 2: Sydney and also Melbourne, and the way our describer is, 30 00:01:32,360 --> 00:01:36,200 Speaker 2: we have seen price growth shift from those affordable markets 31 00:01:36,240 --> 00:01:39,200 Speaker 2: such as Adelai, Perth and Brisbane which really did lead 32 00:01:39,240 --> 00:01:42,600 Speaker 2: price growth in recent years, and it has moved towards 33 00:01:42,640 --> 00:01:46,520 Speaker 2: and shifted towards those more interest rate sensitive markets. So 34 00:01:46,560 --> 00:01:49,120 Speaker 2: we're seeing much stronger rates of growth coming out of 35 00:01:49,680 --> 00:01:51,880 Speaker 2: Sydney as an example, and you tend to find those 36 00:01:51,880 --> 00:01:55,320 Speaker 2: big capital cities are a bit more reactive to changes 37 00:01:55,400 --> 00:01:59,040 Speaker 2: in the cash rate and economic conditions. So yeah, prices 38 00:01:59,080 --> 00:02:02,560 Speaker 2: arising and have seen a much greater rebound in Sydney 39 00:02:02,560 --> 00:02:03,160 Speaker 2: and Melbourne. 40 00:02:03,280 --> 00:02:05,680 Speaker 1: Nikola were people sort of surprised. I guess we got 41 00:02:05,680 --> 00:02:07,880 Speaker 1: that rate cut, then we sort of thought another one 42 00:02:07,960 --> 00:02:11,000 Speaker 1: was coming, and then it didn't happen last time round. 43 00:02:11,040 --> 00:02:14,280 Speaker 1: I mean, did that change things in any way? 44 00:02:15,360 --> 00:02:17,440 Speaker 2: I think the rate cuts that we have seen have 45 00:02:17,560 --> 00:02:20,320 Speaker 2: boosted confidence, and I think it's given a little bit 46 00:02:20,320 --> 00:02:22,440 Speaker 2: of an instant boost to demand. You know, when you 47 00:02:22,440 --> 00:02:26,200 Speaker 2: look at clearance rates nationally, they're at sixty five percent 48 00:02:26,520 --> 00:02:28,440 Speaker 2: and that's actually a two year high, So that in 49 00:02:28,480 --> 00:02:31,200 Speaker 2: itself tells us that demand is starting to come back. 50 00:02:31,440 --> 00:02:34,000 Speaker 2: An overall supply has now dropped to a five months low. 51 00:02:34,040 --> 00:02:36,680 Speaker 2: So when you look at boring capacities, boring capacity on 52 00:02:36,720 --> 00:02:40,240 Speaker 2: average for your average Australian household is now five percent 53 00:02:40,360 --> 00:02:43,240 Speaker 2: higher compared to what it was back in January. And 54 00:02:43,320 --> 00:02:45,400 Speaker 2: I do think that's given a bit of a you know, 55 00:02:45,400 --> 00:02:47,200 Speaker 2: a bit of a spark back to buyers, a bit 56 00:02:47,240 --> 00:02:52,239 Speaker 2: more confidence, deeper pockets obviously to make another beard at auction. 57 00:02:52,960 --> 00:02:55,440 Speaker 2: And I think that we are seeing momentum come back 58 00:02:55,480 --> 00:02:57,640 Speaker 2: into many capital cities NIGLA. 59 00:02:57,720 --> 00:03:00,400 Speaker 1: In terms of Darwin, what did we say, what did 60 00:03:00,440 --> 00:03:02,760 Speaker 1: the figures show for Darwin when it comes to those 61 00:03:02,800 --> 00:03:04,080 Speaker 1: house prices. 62 00:03:04,400 --> 00:03:08,160 Speaker 2: So we saw a marginal increase. So actually the quarterly 63 00:03:08,240 --> 00:03:10,320 Speaker 2: change in Darwin was the weakest out of all of 64 00:03:10,360 --> 00:03:13,560 Speaker 2: our major capital cities. It's just not slightly higher, So 65 00:03:13,680 --> 00:03:16,240 Speaker 2: that one thousand dollars was added to the median house 66 00:03:16,320 --> 00:03:19,200 Speaker 2: price over the June quarter, and that house price is 67 00:03:19,360 --> 00:03:22,520 Speaker 2: just under five hundred and eighty thousand dollars. But what 68 00:03:22,600 --> 00:03:24,800 Speaker 2: I think is interesting is the house prices, we are 69 00:03:24,800 --> 00:03:26,520 Speaker 2: starting to see a bit of a slowdown in the 70 00:03:26,560 --> 00:03:29,200 Speaker 2: pace of price gains, but it's the flip opposite. For 71 00:03:29,320 --> 00:03:32,320 Speaker 2: unit prices in Darwin. We saw them jump by almost 72 00:03:32,320 --> 00:03:35,560 Speaker 2: twenty one thousand dollars in the June quarter alone. They're 73 00:03:35,600 --> 00:03:38,440 Speaker 2: now sitting at just under three hundred and ninety thousand dollars. 74 00:03:38,920 --> 00:03:41,040 Speaker 2: But in terms of that price point the units, that's 75 00:03:41,080 --> 00:03:43,200 Speaker 2: now at an eight year high for Darwin. 76 00:03:43,720 --> 00:03:45,160 Speaker 1: And why do you reckon that is? Why do you 77 00:03:45,200 --> 00:03:47,120 Speaker 1: think we sort of saw on the a slight increase 78 00:03:47,160 --> 00:03:49,440 Speaker 1: when it comes to the house prices, but then with 79 00:03:49,480 --> 00:03:51,120 Speaker 1: the units it was it was much greater. 80 00:03:52,360 --> 00:03:54,760 Speaker 2: I think for me, it really demonstrates where the demand 81 00:03:54,800 --> 00:03:58,320 Speaker 2: pressures are. I mean, units are mostly in the inner 82 00:03:58,320 --> 00:04:03,160 Speaker 2: suburbs of Darwin CBD location. I think it's probably reflective 83 00:04:03,240 --> 00:04:07,920 Speaker 2: of the interest from investors and particularly from interstate investors. 84 00:04:07,960 --> 00:04:09,920 Speaker 2: You know, if you're not local to the area, you 85 00:04:10,000 --> 00:04:12,840 Speaker 2: tend to go to those real kind of higher density 86 00:04:12,920 --> 00:04:16,320 Speaker 2: locations of CBD locations, and you know, investors tend to 87 00:04:16,320 --> 00:04:18,800 Speaker 2: also steer towards units, and there might be a bit 88 00:04:18,839 --> 00:04:22,000 Speaker 2: of an affordability play occurring here too, where you know, 89 00:04:22,400 --> 00:04:24,360 Speaker 2: people are priced out of purchasing a house and then 90 00:04:24,400 --> 00:04:26,000 Speaker 2: they shift towards purchasing a unit. 91 00:04:26,480 --> 00:04:28,479 Speaker 1: Nichola, I know you don't have a crystal ball, but 92 00:04:28,560 --> 00:04:30,680 Speaker 1: I know you are somebody that certainly looks at this 93 00:04:30,839 --> 00:04:33,320 Speaker 1: data and these numbers all the time. What's the road 94 00:04:33,360 --> 00:04:35,800 Speaker 1: ahead look like? Do you think so? 95 00:04:35,920 --> 00:04:37,600 Speaker 2: I do think that we are going to continue to 96 00:04:37,640 --> 00:04:40,640 Speaker 2: see price growth. I do think it is going to 97 00:04:40,640 --> 00:04:43,880 Speaker 2: be a bit diverse across our different capital cities. You know, 98 00:04:43,920 --> 00:04:46,600 Speaker 2: we still have robust rates of population growth, We've got 99 00:04:46,600 --> 00:04:49,520 Speaker 2: investors coming back in, and ultimately the cour thing here 100 00:04:49,600 --> 00:04:51,800 Speaker 2: is we've got a lack of new homes being built. 101 00:04:51,960 --> 00:04:54,040 Speaker 2: You know, when you look at completions, it's running below 102 00:04:54,200 --> 00:04:57,680 Speaker 2: population growth. So our expectations for the rest for this 103 00:04:57,760 --> 00:05:00,680 Speaker 2: financial year, our prices are going to run, but I 104 00:05:00,720 --> 00:05:03,080 Speaker 2: would describe them as a more of a modest pace 105 00:05:03,240 --> 00:05:05,000 Speaker 2: of growth. I don't think it's going to be boom 106 00:05:05,040 --> 00:05:07,760 Speaker 2: time scenarios, but we are expecting prices to edge. 107 00:05:07,800 --> 00:05:12,159 Speaker 1: Hire Well Domain Chief of Research and Economics, Nicola Pale, 108 00:05:12,400 --> 00:05:14,640 Speaker 1: really appreciate your time this morning. Thanks for having a 109 00:05:14,720 --> 00:05:17,360 Speaker 1: chat with us, Thank you, Thanks so much.